Some time back I was pointed to the practical implications of Baltic Dry Index by a good friend whose business sells imported products. It is an excellent barometer of global trade – a critical issue for the health of open economies like SA’s.
The graph above, courtesy of Stanlib’s chief economist Kevin Lings, tracks the index over the past decade. It tells us a great deal about the economic impact of the Covid-19 pandemic on the world. Less business activity translates into lower trade. And vice versa.
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The graph shows the plunge in shipping rates during early 2020 as the pandemic took hold and lockdowns were imposed. And then 2021’s surge in prices because of pandemic-related supply chain blockages – which was itself highly inflationary.
In the last few months, however, this key shipping index has returned to the middle of the past decade’s range. It tells us global trade is returning to pre-pandemic normality. Society too.
More for you to read today:
- Tech Rout Fueled by Bond-Market Turn. Rising yields, particularly on inflation-linked Treasurys, are often viewed as close indicators of borrowing costs for businesses and consumers.
- WSJ Exclusive: Activist Investor to Call on Peloton to Fire Its CEO. Blackwells Capital to push stationary-bike maker to explore a sale, sources say.
- Jordan Peterson: Why I am no longer a tenured professor at the University of Toronto. Bestselling author says culture war ideology of diversity, inclusion and equity is demolishing education and business.
*PS My interview with Paul O’Sullivan explores his innovative ideas on how Zondo disclosures should be practically applied. Posted late Friday evening, already 11 500 people have watched it. Here’s the link to the recording: https://youtu.be/EtVzIqOZrAw
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